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Equality or Growth: A 20th Century Argentine Dilemma

Published online by Cambridge University Press:  13 January 2010

Pablo Gerchunoff  and
Lucas Llach
Pablo Gerchunoff
Affiliation:
Universidad Torcuato Di Tellaa
Lucas Llach
Affiliation:
Universidad Torcuato Di Tellaa
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Abstract

Argentina's long term economic performance between 1880 and 2000 (convergence with the rich followed by divergence) can be understood in terms of the economic and political consequences of its peculiar factor endowments. Skewed endowments meant huge gains from trade during the First Globalization boom; but, conversely, disintegration of world commerce in the Depression was a heavier blow for such a naturally specialized economy. The extreme protectionism, characteristic of the post-war period, was related to the country's peculiar economic structure: comparative advantages in food production and disadvantages in (labor-intensive) manufacturing implied that closing the economy was a political winner, though it eventually hampered growth. The road to openness followed in the last quarter of the 20th century would have meant, correspondingly, an increase in inequality. Attempts to moderate it through debt accumulation and exchange rate appreciation destabilized the economy and contributed further to Argentina's comparative decline.

Resumen

La experiencia económica de la Argentina entre 1880 y 2000, caracterizada por una sucesión de convergencia y divergencia con los países ricos, puede entenderse a partir de las consecuencias económicas y políticas de su dotación de factores de producción. Una sesgada disponibilidad de factores implicó grandes beneficios para la Argentina en la primera globalización; pero la desintegración comercial durante la depresión representó un impacto aciago. El extremo proteccionismo de la Argentina en la posguerra tuvo que ver con su peculiar dotación factorial: las ventajas comparativas en alimentos y desventajas en producción industrial trabajo-intensiva hacían políticamente atractivo el cierre de la economía, aunque a la larga desalentara el crecimiento. El camino de la apertura seguido en el último cuarto de siglo xx implicaría, al contrario, un aumento de la desigualdad. Los intentos por moderarlo con apreciación cambiaria y endeudamiento desestabilizaron la economía y contribuyeron, al cabo, al retraso argentino.

Keywords

Argentinagrowthequalitycomparative performancefactor endowmentsArgentinacrecimientoequidaddesempeño comparadodotación de factores
Type
Artículos/Articles
Information
Revista de Historia Economica - Journal of Iberian and Latin American Economic History , Volume 27 , Issue 3 , Invierno 2009 , pp. 397 - 426
Copyright
Copyright © Instituto Figuerola de Historia y Ciencias Sociales, Universidad Carlos III de Madrid 2009

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